intersuisse report says buy at .21

Mawson West Limited Potential high grade copper resource
BUY $0.21
ASX Share Code MWE
ASX Option Code MWEO
Issued Capital 86.5 million shares
9.8m May’07 20c listed options
12.0m unlisted options
Market Capitalisation $19.2 million
Monthly Share Turnover 12.0 million
12-month High / Low $0.215 / $0.062
Cash Reserves $1.58 million
Top 20 Shareholders Hold 38.2%
Major Shareholder None
A strategic alliance with Anvil Mining provides MWE
with the opportunity to become a successful low cost
copper producer in the Democratic Republic of Congo.
Consisting of a contiguous tenement package that covers
a substantial length of a rift valley fault, the Kapulo
Project holds excellent exploration potential. Recently,
through surface sampling, MWE confirmed the high
grade tenor of the copper mineralisation.
KEY POINTS
���� MWE has a farm-in agreement with Anvil Mining
(AVM), whereby the company is earning a 65% interest
in the Kapulo copper project located in the Democratic
Republic of Congo (DRC) through the expenditure of
US$4 million over four years. Alternatively MWE may
earn a 51% interest in the project through expenditure
of US$2.7 million or by defining a JORC compliant
indicated resource of 50,000 tonnes of copper at 4%,
whichever comes first.
���� MWE will operate under a strategic agreement with
AVM, whereby MWE will work as a contract company
to AVM until it has gained a 51% interest. This will
allow the company to operate under the terms of
AVM’s Dikulushi Mining Convention, and to benefit
from AVM’s experience in the DRC. AVM’s Dikulushi
copper mine is located 130 kilometres to the south west.
���� The project straddles the border between Zambia and
the DRC and consists of a contiguous tenement package
that covers 5,500 square kilometres. The Kapulo copper
deposits comprise three main zones, Katanga, Safari
North and Safari South and are located along the
regional rift valley Kapulo Fault. The tenement package
contains a 130 kilometre strike length of this structure.
���� The Kapulo copper deposits have been explored by
Simikat, Seremi and Falconbridge, during the 1920s,
1950s and 1970s, respectively, indicating the potential
to host between 750,000 tonnes of ore averaging 4.7%
copper and 850,000 tonnes averaging 5.7% copper.
���� The estimates were based on sampling from pits, open
cuts, drifts and eight diamond drill holes totalling 2,055
metres. The estimates are of a conceptual nature and are
not JORC compliant. They are open ended along strike
and down dip and only account for material above the
water table which averages 50 metres in depth.
���� Diamond drilling by Falconbridge beneath the Katanga
deposit intersected the primary ore zone at 125 metres
vertical depth where the system was still 15 metres wide
and averaging 4% copper. The Kapulo deposits are
reported to have varying widths of up to 40 metres.
���� Recent channel and rock chip sampling by MWE has
confirmed the high grade nature of the deposits with
results of 8 metres averaging 11% copper and over 30%
copper in rock samples.
���� Initial acid leach test work on oxide samples from the
Kapulo deposits has produced very encouraging results
of near 90% extractable copper. Very short leach times
were achieved with the bulk of extractable copper
leached within two hours. The resultant solution is
amenable to direct precipitation of either copper
sulphate or copper sulphide. The copper sulphide route
gives a clean 65% copper product and provides better
transport economics to smelters. Consequently there is
the potential for low capital expenditure requirements.
���� MWE is to commence drilling on the Kapulo project
within the next two months with an initial 2,000 metres
of RC and 1,000 metres of diamond drilling planned.
���� At the Golden Mile South gold project in the Eastern
Goldfields in Western Australia, MWE holds varying
interests (75% to 100%) in tenements that comprise a
130 square kilometre area located 4 kilometres to the
south east of the Kalgoorlie Super Pit.
���� MWE is also progressing a feasibility study on the
Maybell +40,000 ounce gold resource at Norseman. A
second deposit, Lord Percy, is also under study and a
third, Black Cat, may provide a further resource.